On Wednesday, the Delhi High Court granted a number of petitions asking for the de-freezing of their bank accounts and permission to conduct business. These petitions were filed in a dispute involving Vivo Mobile India Private Limited and money laundering.
After hearing the arguments made by the petitioner's and the Enforcement Directorate's (ED) attorneys, Justice Yashwant Varma granted the petitioners relief with the stipulation that they adhere to a number of requirements, including keeping the disputed amount in the bank account on the day the account was frozen.
The petitioner will have 48 hours to use their bank accounts, the bench ordered the ED.
The 12 corporations have petitioned the High Court through attorney Rajiv Mohan to have their bank accounts unfrozen.
The petitioners' bank accounts have reportedly been been frozen by the ED since July 6 of this year as a result of a money laundering investigation involving Vivo Mobiles, it was stated before the bench.
The attorney claimed that the petitioner companies were unable to pay their expenses, such as rent, salaries, and other costs, as a result of the bank accounts' being frozen. As a result, the Bank accounts ought to be permitted to function.
Additionally, it was claimed that on August 8 the court had granted the same remedy in the other batch of petitions.
Vivo Mobile was previously given permission by the High Court to use the bank account on July 13 of this year, subject to the provision of a bank guarantee in the amount of Rs. 950 crore. The business had contested the Enforcement Directorate's freezing of its bank accounts (ED).
According to the ED, out of the total sale proceeds of Rs. 1,25,185 crore, Vivo India's nearly 23 associated companies, such as Grand Prospect International Communication (GPICPL), transferred enormous sums to the company and sent Rs. 62,476 crore, or nearly 50% of the turnover outside of India, primarily to China.
"It has been discovered that these businesses transferred substantial sums of money to Vivo India. Furthermore, Vivo India transferred Rs. 62,476 crores, or nearly 50% of the total revenue, out of India, primarily to China, from the total sale revenues of Rs. 1,25,185 crores "the ED was updated.
After conducting searches at 48 locations nationwide that belonged to Vivo Mobiles India Private Limited and its 23 affiliated firms, including GPICPL, the ED made this statement.
Additionally, it stated that GPICPL was registered on December 3, 2014, at the Shimla office of the Registrar of Companies, with registered offices in Gandhi Nagar, Jammu, and Solan, Himachal Pradesh.
Zhengshen Ou, Bin Lou, and Zhang Jie incorporated the business with the aid of Chartered Accountant Nitin Garg.
"On April 26, 2018, Bin Lou departed from India. In 2021, Zhengshen Ou and Zhang Jie departed India."
On the basis of a First Information Report (FIR) filed by Kalkaji police station under Delhi Police on December 5 last year against GPICPL and its Director, shareholders, and certifying professionals as a result of a complaint made by the Ministry of Corporate Affairs, the ED started the PMLA investigation by recording an Enforcement Case Information Report (ECIR) on February 3 this year.
